Walmart Trims Its Profit Forecast for the 4th Quarter

Walmart lowered its profit expectations for the latest quarter, citing cuts to food stamps and an especially tough winter.

The giant retailer said on Friday that profit would most likely come in at the low end of its guidance range of $1.60 to $1.70 a share — or even slightly below. The weakness in the quarter, which ended on Friday, is also likely to be a drag on the year.

The company is set to report fourth-quarter and full-year earnings on Feb. 20.

Despite a decent holiday season, Charles M. Holley Jr., the company’s chief financial officer, noted that the impact from reductions to the federal Supplemental Nutrition Assistance Program, or food stamps, was “greater than we expected.” Billions of dollars were cut from the program last year, which left Walmart customers who receive food stamps with less money to spend over all.

Mr. Holley also pointed to the severe weather, including “eight named winter storms” during the quarter that forced some stores to close. The weather affected Sam’s Club as well, Mr. Holley said.

The retailer said it expected to incur “severance-related” costs associated with its Sam’s Club chain. The company announced last week that it would lay off 2,300 Sam’s Club employees; it is also closing one location.

The company previously projected that sales in the domestic market would be level during the fourth quarter and that sales at Sam’s Club would be from flat to 2 percent. Excluding fuel, Mr. Holley said that sales at both stores were now expected to come in slightly below that guidance.

Internationally, the retailer faces challenges as well. In India, Walmart ended a franchise and supply agreement, while in Brazil, the company is facing tax assessments and said it expected to incur costs from employment claims. About 50 underperforming stores in China and Brazil were closed.

Walmart stock ended was basically flat in Friday trading.

A version of this article appears in print on , on Page B2 of the New York edition with the headline: Walmart Trims Its Profit Forecast for the 4th Quarter. Order Reprints | Today’s Paper | Subscribe